Published: Thu, April 19, 2018
Money | By Armando Alvarado

Export ban on ZTE by USA will hurt Qualcomm and others

Export ban on ZTE by USA will hurt Qualcomm and others

On the other hand, Android is an irreplaceable core part of ZTE's devices, and losing it would be a huge deal.

ZTE could be banned from using Google's Android operating system as a result of announcement made on Monday, April 16 that banned it from using USA technology for the next seven years. We have reached out to Google for comment.

"The Chinese company's radio units, wireless base stations and smartphones all rely on US components that ZTE will not be able to replace in time to meet shipment schedules and fulfill its commitments to customers".

Last year ZTE shipped 46.4 million smartphones ranking seventh globally out of Android-based manufacturers and commanding around 12 percent of the USA market.

Apparently, ZTE and Alphabet have been in discussions since the ruling on Tuesday, trying to determine whether or not ZTE will be allowed to use Android on its devices following the ban. More recently there is debate over whether this includes the free licence for Android, or perhaps more likely whether they could continue to use the open-source Android components but exclude all of Google's services including the Play Store.

Google, meanwhile, can't be happy to lose access to tens of millions of ad-consuming customers. While ZTE chose to settle with the US government over the issue, it emerged that the company had lied to officials about the disciplinary actions taken against staff, even going so far as to reward some employees for illegal actions.

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As far as other specs are concerned, the smartphone will flaunt a 6.28-inch FHD+ AMOLED display with 2,280×1,080 pixel resolution. Last but not the least, the company has already confirmed the most controversial iPhone X-like notch is here to stay.

What if these companies develop their own mobile OS, of Android inspiration or not down the road, to protect themselves against future bans?

On top of banning ZTE from using hardware and software developed by American firms, the United States government has other means of denying access to the USA market to ZTE, Huawei, and any other company deemed a "national security threat".

The proposed new FCC rules are expected to be finalised this year. Its deal with the USA government included penalties and fines totaling more than a billion dollars, but allowed it to continue doing business with US suppliers.

What's interesting in the whole fight against ZTE and Huawei is that there's no other country ready to follow America's lead.

Both ZTE and Huawei were accused of making telecommunications equipment that poses national security threats, according to a report released by US' House Intelligence Committee in 2012.

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